My question to him during a radio interview was, "Housing starts for November are at their lowest levels since the early '90s when we were experiencing a similar decline in home values and what economist described as a mild recession. Is this a repeat?" There I put it out there for all to hear, "RECESSION."Dolf replied, "Yes, I believe we are in a similar situation to the early 90's when valuations were too high and the market had to go through a correction. Since then, however, home values increased threefold and I believe we will see the same type of appreciation over the intermediate to longer term." In other words, opportunities can be found in this economic chaos.
Multifamily units or apartment dwellings would also meet the criteria for affordable living spaces. But investors are warned to proceed with caution. "Apartment renters are younger and more transient. You must have a consistent high occupancy to cover total carrying costs," Dolf cautions. Remember, financing for rental properties requires a larger percentage of equity than a personal residence
A recession can be defined as two consecutive quarters of a falling GDP or economic activity. Are we entering a recession? Doesn't matter as long as you tighten your belt and understand that wealth is built one day at a time.
1. We need a _Great Depression. Those of us that weathered the great times of 1929 till the War in Europe in 1939 became the greatest generation after those that won the Civil War. We learned to appreciate the many Blessings of the USA that before hand we abused. We were tested and reminded that to have a roof over our head and a full meal was all we really needed to thrive; and we did.
T. J. Carlson at 6:27PM on Dec 21st 2007